GM and their recent hoax of a contract renewal with its Oshawa truck plant have been in my head for over a week. This issue has hit close to home as both of my parents work in the auto industry. My father has personally worked in the Oshawa plant helping set up and facilitate new lines of production in the past. Moreover, as a resident of Oshawa for two years, I was surrounded by fellow classmates whose parents worked (hard) at the GM factory.
In hindsight, I realize how many people I knew in Oshawa who relied on this factory to provide for their families. I even rented an apartment from a GM engineer who worked at GM headquarters in Oshawa. When I lived there from 2005-2007, everything seemed peachy. GM had funded an entire research building at a newly developed university in Oshawa during my stay.
Today, as I sit here writing this, I’m left wondering why GM, a company I used to be proud of, felt the need to breach a three year contract only weeks after signing it.
In the June 14th Toronto Star, an article outlined a judge’s ruling that dismantled the CAW’s current blockade and limited pickets so GM salaried employees could continue working at its headquarters. This ruling was made by Mr. Justice David Salmers of the Ontario Superior Court of Justice. Justice Salmers agreed with GM’s claim that they would suffer irreparable harm from the blockade if it were to continue.
Firstly, that ruling really busts my chops. Irreparable harm if the blockade were to continue? I mean, we are talking about an entire community, not only Oshawa, but Durham region in general, who relies heavily on this industry to propel its economy and provide for its families. What about the irreparable harm there?
Secondly, GM claims that it is ceasing production because of gasoline prices and consumers shifting attitudes toward smaller, more fuel-efficient vehicles (Toronto Star, June 14, B1 & B4). I do not find this claim to be acceptable for two reasons. I mean, gasoline prices increasing has been no surprise (if you’re shocked, please pick up a newspaper once a month from now on). Demand for more fuel-efficient vehicles has also been a no-brainer in recent years. Why has GM lacked consideration and proactive measures to tailor to these new needs and demands? Isn’t that what business is about?
Lastly, I find it rather upsetting that GM may be allowed to breach its contract and not fulfill the three year obligation they made to the Oshawa plant. Justice Salmers called GM’s decision “almost deceitful business practice” (Toronto Star, June 14, B4). ALMOST deceitful? Let’s not kid ourselves.
I can only hope that with today’s judicial activism, the Superior Court can recognize that corporations, like GM, should not be allowed to breach such contracts. Furthermore, I hope that the results of this pending issue result in GM being REQUIRED to fulfill this contract setting precedent for future (bullshit) cases such as this one. Really, why should Oshawa worker’s pay for GM’s lazy demeanor?
Until next time
Sources for this blog provided by:
Toronto Star, Saturday June 14, 2008. “CAW must dismantle blockade, judge rules” pgs. B1 & B4
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4 comments:
I can definitely understand your frustration and the frustration of others from the closing of the GM plant. But this comes down to the question of corporate responsibility. Should corporations consider what will happen to a location once they close down or does a decision come down to basic economics? If it turns out that GM will be violating a contract made with the Oshawa plant by closing then they have a responsibility to fulfill the requirements of that contract. However, if this turns out not to be true (this claim was made by protestors from the GM plant and has yet to be confirmed by GM) than GM has every right and incentive to close down the plant. It is hard to reasonably ask a corporation to continue the operation of a plant if it is not in their best economic interest do to so. Corporations are responsible to their stakeholders and if continuing operation in Oshawa is not in the interest of their stakeholders, then they should close operations in Oshawa despite the unfortunate consequences for the employees.
A (small) consolation is the recent decision for GM to start manufacturing hybrid vehicles in 'the best truck plant GM has'. The feeling that this is simply a bandaid for a bullet wound is pressing, however. GM is a dinosaur in the industry, and they are well aware of this fact. As the previous poster said, it's unfortunate that the interests of the company (and thus shareholders) conflict so fundamentally with those of the employees
I understand that the interest of the company and shareholders is important. But I'm willing to bet that a vast majority of those shareholders are either employees of GM itself, or employees of companies who support GM (making out-sourced vehicle components etc).
Also, economically we're talking about a profit decrease. Profit...being the surplus of money left over after all business dealings are said and done. They're not in the red yet, and I'm not convinced that they would be if they fulfilled the contract.
In fact, it might be some incentive for them to develop alternative solutions and productions lines for the Oshawa plant.
The GM situation has severely busted my chops. I have been a foriegn car fan forever and always got shit on for not buying "domestic". Well, look whats happened now. Our "domestic" cars are now being made in Mexico leaving many people out of work. While which car companies continue to manufacture in Canada, and recently created even MORE jobs? That's right, those nasty foriegn companies from Japan -- Toyota and Honda. These are the companies that everyone hates for being "foriegn" yet they are now the only ones left. Fuck you GM and FORD. I'm glad I never supported you... P.S. Sorry Windsor Ontario for what GM has done to you. P.P.S. Last year, the payroll of the top 5 execs at Ford was 60 MILLION DOLLARS, over 10% more than 2006. Maybe if we didn't buy that extra jumbo jet or a ming vase we might be able to afford a few thousand employee salaries. P.P.P.S. FUCK YOU FORD AND GM.
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